Financing in Palo Alto>Question Details

Wolf, Other/Just Looking in Sunnyvale, CA

Who has the mortgage rates right now? Looking for conforming loan for fixed term.

Asked by Wolf, Sunnyvale, CA Thu Jul 1, 2010

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Every lender can give you about the same rate. Its the quality of service you should be looking for. Get a referral from someone you know that just got financed. Or call me. 20 years in the biz and can close refis in 15 business days.

Don Maher
Universal Capital Mortgage
(800) 736-0565 *206
1 vote Thank Flag Link Thu Jul 1, 2010
Follow we do a daily blog that discuses economic data that drives the market, mortgage rates and opinion of what we would do if I were financing a home.
0 votes Thank Flag Link Mon Jul 5, 2010
Once again, everyone has the same rates, they are all available all the time, just with a different cost to get them. That cost is determined by too many factors to be able to say who's rates are better than anothers without reading the fine print and knowing the full picture. Some people may be quoting 15 day locks with a 60% LTV, others 30 day with an 80% LTV. Same rate with different fees. I wish people would stop encouraging the McDonaldization of the mortgage industry and encourage clients to submit enough information to get accuracy instead of low ball bait and switch!
Web Reference: http://WeFixRates.Info
0 votes Thank Flag Link Fri Jul 2, 2010
Hi Wolf:

Here they are:

I am sure you will be just fine.

Good luck and give me a call if you need help with your search or
the rates.

Best Regards

Web Reference:
0 votes Thank Flag Link Fri Jul 2, 2010
Google has a new app that gives you real time rate info but I misplaced the link. I am sure you can google it.
Web Reference:
0 votes Thank Flag Link Fri Jul 2, 2010
Today, GMAC has the best fixed rates & Sun Trust has the best ARM rates. .... Happy funding, Rudi
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0 votes Thank Flag Link Fri Jul 2, 2010
Depends on the situation and structure of the deal. Quoting rates blindly will never accurately describe what any of us can do for you without more information regarding your situation.

As an example, if this is a cash-out refinance over 80% ltv there is no loan to be done on a conforming program you would have to go FHA. Or if the loan is over 80% LTV in general you will have to pay pmi.

So I would elaborate more on your situation so you can get a better quote.
0 votes Thank Flag Link Thu Jul 1, 2010
Hi Wolf,

Who has the best mortgage rates for any particular loan product can change on a daily basis. There are three primary conduits that you can use for your financing (retail, bank, and broker). I have been both a Mortgage Banker and Broker while also being a Realtor. In Dec 2008 I wrote on the differences between Retail, Mortgage Banker, and Mortgage Broker here:…

In the post above I commented how Mortgage Brokers reduced their number of financing sources (this was due to wholesalers requiring certain volume). While choice suffered, a benefit of this consolidation was the higher loan volumes created through reduced funding channels, which allows for volume-based pricing adjustments that can make certain brokers more competitive than a direct lender.

My suggestion WOULD NOT be a retail bank, since you will only be exposed to their mortgage rate for the loan product you desire. Mortgage Bankers/Brokers will have multiple funding channels that offer the product you are looking for, and it’s the job of the loan officer you choose to find who's offering the best pricing out of that group.

The rates that are quoted to you by a mortgage broker/banker are tiered. For example, let's assume you need $300K in financing on a standard 30Y loan. Assume that today the rate sheet showed the following tier structure:

%Rate Broker Commission / % or Buy-down Cost
4.250 / 1.544
4.375 / 0.938
4.500 / 0.480
4.625 / 0.081
4.750 / (0.258)
4.875 / (0.498)
5.000 / (0.821)
5.125 / (1.055)
If the percentage after the rate has brackets around it “( )” it's the commission being offered by the Wholesaler. Conversely, if there are no brackets it’s the Wholesaler’s fee to "buy down" the rate. NOTE: this hypothetical pricing example is over-simplified. There can be many more price adjustments that must be accounted for such as LTV, credit score, etc. You can see an example of an actual Lender rate sheet here:

A loan broker/banker will typically earn at least 1% on a transaction. There are two ways for this to occur:
1) The loan broker has to select a rate where the lender pays the commission.
Using the example "rate sheet” numbers above, this would result in a 5.125% rate, with no points paid.

2) The buyer pays the commission via points.
Using the example "rate sheet" above, this would result in a 4.625% rate and paying points of $3,243 [(1.081/100) x $300K].

If you are a new home buyer I'm going to bring up a very important topic. There is a BIG difference between a Pre-Qualification and Pre-Approval. If you are looking for accuracy void of surprises you MUST be Pre-Approved, not Pre-Qualified. For the important differences see:

I would also suggest you review the two following papers to prepare yourself for your search:…

Best, Steve
0 votes Thank Flag Link Thu Jul 1, 2010
I often get asked by consumers; "what's your rate today?" There really is no good answer to this question because technically, all rates are available every day. Since there is an associated cost to acquire each interest rate, the correct answer should be; "any rate you want." Rate sheets have a range of interest rates listed and a cost associated with each; some costs are positive and some are negative. Selecting a rate with a negative cost would "rebate" a percentage of the loan amount back to the broker and thus, to you. This rebate is called "Yield Spread Premium".

For example:

4.25% = +.5% (cost of 1/2 point)

4.375% = 0% (no points)

4.5% = -.5% (rebates 1/2 point)

4.625% = +1% (rebates 1 point)

Note: These are only examples and not accurate based on current rates.

In the above scenario, if you selected 4.25% you would have to pay 1/2 point (.5%) of the loan amount to get this rate on top of your other closing costs. If you selected 4.375%, there are no points to get this rate and it's called a "par" rate. If you selected 4.5%, you would get .5% of the loan amount rebated to you, to go towards closing costs, so your overall costs would be less. If you selected 4.625%, you would get a full 1% (1 point) rebated to you to offset other closing costs.

Choosing which rate works best depends on your long and short term goals. Paying points to lower rate may be a good move when staying long term while using YSP to your advantage and lowering closing costs can be an effective short term strategy. As of January 1, 2010, all YSP is to be credited to the consumer, so you need to be careful who you work with and make sure you understand how this works so you can understand the true differences between the rates you are being quoted.

Gregorio Denny
Tripoint Mortgage Group, Inc.
DRE# 01521904
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Thu Jul 1, 2010
Live rates based on your exact situation are available at

But, rates are at ridiculously historical lows!

Fred Glick
Licensed by the CA Department of Real Estate #01507615, NMLS #133975
Web Reference:
0 votes Thank Flag Link Thu Jul 1, 2010
There is not a lot of difference in rates overall in the market. Your rate will be dependent on the amount of loan, down payment and your credit score. The fees are what is most variable between different banks. In general it is better to get a pre-approval from a direct lender, like Bank of America or Wells Fargo, or Princewton Capitol, and then you can compare their fees along with the rates.
Web Reference:
0 votes Thank Flag Link Thu Jul 1, 2010
Thursday's bond market is in positive territory after this morning's economic data gave us favorable results and the stock markets opened with losses. The major stock indexes are extending yesterday's negative tone with the Dow down 95 points and the Nasdaq down 24 points. The bond market is currently up 7/32, which should improve this morning's mortgage rates by approximately .125 of a discount point.

This morning's important data came from the Institute of Supply Management (ISM) who reported that their manufacturing index fell to a reading of 56.2 from May's 59.7. This was below forecasts of 59.0, indicating that manufacturer sentiment was not as strong as expected. That is good news for the bond market and mortgage rates since it hints at manufacturing sector weakness.

Also released this morning were last week's unemployment figures from the Labor Department. They announced that 472,000 new claims for unemployment benefits were filed last week when analysts were expecting to see that only 458,000 were filed. This data tracks only a single week's worth of new claims, so it usually has little impact on the bond market and mortgage rates unless it varies greatly from forecasts. That was the case this morning as traders are more interested in tomorrow's monthly report.

Tomorrow morning brings us the release of two reports, including the extremely important Employment report from the Labor Department. This report will give us June's unemployment rate, number of new payrolls added or lost and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. The ideal scenario for the bond market is rising unemployment, a large decline in payrolls and no change in earnings. Weaker than expected readings would likely help boost bond prices and lower mortgage rates tomorrow. However, stronger than expected readings could be extremely detrimental to mortgage pricing. Analysts are expecting to see the unemployment rate rise 0.1% to 9.8%, with 100,000 jobs lost and a 0.1% rise in earnings.

The Commerce Department will post May's Factory Orders data late tomorrow morning, which is similar to the Durable Goods Orders report that was released last week. The biggest difference is that this week's report covers both durable and non-durable goods. It usually doesn't have as much of an impact on the bond market as the durable goods data does, but can lead to changes in mortgage pricing if it varies greatly from forecasts because it measures manufacturing sector strength. Current expectations are showing a 0.7% decline in new orders from April's levels. A larger decline in orders would be considered good news for the bond market and could help lower mortgage rates slightly tomorrow. However, the employment data is much more important to the markets than this report is.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2010
0 votes Thank Flag Link Thu Jul 1, 2010
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